Subject: Internet procurement
I wanted to bring your attention towards the benefits of e-commerce b2b. We have noticed a lacking in our supply chain, as for the last two orders have been late, moreover we have also noticed that the supplier has been misquoted about the amount of supplies we need and this why the supplies were less then what we expected. I wanted to take this as an opportunity to let you know that Fitter Snackers can benefit from internet procurement, as it is much cost effective and also less time consuming. Reports have suggested that buying online saves 15% on cost as wastage is avoided and also supplier margins are reduced (Sammy Al Ghazaly). It will also save us cost and time as we would not need professional buyers to search and select a buyer, as catalogues and matching of products by different suppliers are available on the internet. It will also help us analyze which supplier is less costly, and can switch from one supplier to another anytime. Prices are updated regularly and are easy to compare, we could be aware quickly if there are sudden hike in material prices (Sammy Al Ghazaly). Managing our inventory will be quick and also less costly as suppliers can keep track of our inventory, as automated software’s are available, and shortage will be filled before time. This will also let us cut on our wages as we would not need too many employees to manage our inventory and order supplies, it can be easily done by just one employee over the internet.
Managing inventory manually is difficult and time consuming, also chance of errors are very high, automated inventory management software’s can help us avoid this. Suppliers can keep track of our inventory and supply materials before hand. It also takes time to go over a very old supply written in our books, it can be less time consuming over the internet as data management is quick and easier. Transactions can be secure and easier, as regular bank visits will be cut down, we can pay the suppliers directly over the internet. We can achieve high efficiency in our supply chain, by automated procurement processing. Through this we can get supplies just in time to reduce storage cost, this could help us reduce wastage too. This may also help us cut on production time, increase efficiency and reduce labor cost. We could have a good relation with the supplier, connecting with him electronically; the more information can flow smoothly the better it can be for Fitter Snacker. This would also help us reduce the selling cycle our customers can enjoy fast and reliable service. We can have a clear view in our expenses as data sheets can be managed online, with the help of electronic data interchange the supplier and Fitter Snacker could share information on past transactions, such as bill and shipping details and also check on any theft or error. With the growing base of our customers we need to bring innovations in our production process to meet high customer demands. With could be efficient and cost effective if we switch to e-commerce, this can give us more time to concentrate on our customers and give them better value for money. I hope you will look over the suggestions I have given you, this may help Fitter Snacker grow even further.
Works Cited
Ghazaly, Al Sammy. Benefits and Barriers on B2B e-marketplaces. E-business Issue, www.emarketservices.com, 2005. Retrieved from
www.emarketservices.com at 27 July 2010.
